Tuesday, June 28, 2011

The CANSLIM top-8 scan saw Research in Motion (RIMM) dropped on fundamentals - finally - and Silver Wheaton Corporation (SLW) in at eighth place. The last installment from June 14th can be found here. The following CANSLIM stock screener settings were employed:

Still top dog on the list is AAPL. After losing $330 support it was able to successfully defend channel support. It went on to regain the 200-day MA and is well positioned to rally to channel resistance, although the intermediate trend remains down. The channel remains on course to test the next level of support at $300.

Vale S.A. (VALE) remains within its downward channel. The current rally may have the legs to make it to resistance (about $1 away), although it has long since said good bye to its 200-day MA and suffered a 'Death Cross' between 50-day and 200-day MA in May. Bulls likely to remain lukewarm on this until the channel breaks.

Baidu (BIDU) made a picture perfect defense of $115 support + channel support + 200-day MA as it rallied to - and through - channel resistance. Next up is $140, i.e. the June reaction high.

Next is Barrick Gold (ABX). The head-and-shoulder pattern is still in play, although prices haven't dropped through the floor. A small rally stalled out at $45, marking it as an area of supply. Next price to test is the July reaction low at $40.

Cognizant Technology Solutions Corp (CTSH) had previously sliced through $72 support and 200-day MA in a single day. It went on to spike low at $66 before recovering to $72, which is now resistance. However, the rally back to $72 did do enough to break declining resistance, so there is buying momentum. $70 is key support - anyone who purchased stock recently would probably perceive $70 as the line in the sand for deciding whether to hold, or bail.

Netflix (NFLX) attempted a breakout in mid-June which gave bulls a bit of fright when $255 support was lost and it dropped to $240. The stock has since recovered but it's unlikely to survive a second round of selling, particulary if $250 was to break again. The current rally won't see resistance until it gets to $275.

Agrium (AGU) hasn't quite found its groove but its playing more as a sleeper. It's lingering around its 200-day MA; unable to break supply, but comfortably defending $78-80 support. While not exciting it's off-the-radar approach isn't doing any harm either. When stocks start moving and you look back at a chart and ask yourself, "Why didn't I buy then", this is what the chart looks like. Watchlist material.

Finally, new kid-on-the-block Silver Wheaton Corp is in at 8th place. The mining stock was able to defend $30 support last week but is encountering selling at declining resistance. This has resulted in a price squeeze which will soon resolve one way or the other. A break of support and the next target down is around $26; break resistance and $37 comes into play. No clear signal yet as to which way this will go.

Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies via his Zignals home page. Each Zignals member has an unique home page which they can share with friends and clients to sell their strategies.

The CANSLIM top-8 scan saw Research in Motion (RIMM) dropped on fundamentals - finally - and Silver Wheaton Corporation (SLW) in at eighth place. The last installment from June 14th can be found here. The following CANSLIM stock screener settings were employed:

Still top dog on the list is AAPL. After losing $330 support it was able to successfully defend channel support. It went on to regain the 200-day MA and is well positioned to rally to channel resistance, although the intermediate trend remains down. The channel remains on course to test the next level of support at $300.

Vale S.A. (VALE) remains within its downward channel. The current rally may have the legs to make it to resistance (about $1 away), although it has long since said good bye to its 200-day MA and suffered a 'Death Cross' between 50-day and 200-day MA in May. Bulls likely to remain lukewarm on this until the channel breaks.

Baidu (BIDU) made a picture perfect defense of $115 support + channel support + 200-day MA as it rallied to - and through - channel resistance. Next up is $140, i.e. the June reaction high.

Next is Barrick Gold (ABX). The head-and-shoulder pattern is still in play, although prices haven't dropped through the floor. A small rally stalled out at $45, marking it as an area of supply. Next price to test is the July reaction low at $40.

Cognizant Technology Solutions Corp (CTSH) had previously sliced through $72 support and 200-day MA in a single day. It went on to spike low at $66 before recovering to $72, which is now resistance. However, the rally back to $72 did do enough to break declining resistance, so there is buying momentum. $70 is key support - anyone who purchased stock recently would probably perceive $70 as the line in the sand for deciding whether to hold, or bail.

Netflix (NFLX) attempted a breakout in mid-June which gave bulls a bit of fright when $255 support was lost and it dropped to $240. The stock has since recovered but it's unlikely to survive a second round of selling, particulary if $250 was to break again. The current rally won't see resistance until it gets to $275.

Agrium (AGU) hasn't quite found its groove but its playing more as a sleeper. It's lingering around its 200-day MA; unable to break supply, but comfortably defending $78-80 support. While not exciting it's off-the-radar approach isn't doing any harm either. When stocks start moving and you look back at a chart and ask yourself, "Why didn't I buy then", this is what the chart looks like. Watchlist material.

Finally, new kid-on-the-block Silver Wheaton Corp is in at 8th place. The mining stock was able to defend $30 support last week but is encountering selling at declining resistance. This has resulted in a price squeeze which will soon resolve one way or the other. A break of support and the next target down is around $26; break resistance and $37 comes into play. No clear signal yet as to which way this will go.

Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies via his Zignals home page. Each Zignals member has an unique home page which they can share with friends and clients to sell their strategies.

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